Report predicts robo AUM will surpass US$1 trillion within 5 years

Assets on U.S. digital investment management platforms were estimated to be around US$257 billion at the end of 2018, a report from research firm Aite Group says. And that number could grow five-fold in the next five years.

Client assets under management on robo-advice platforms will reach $1.26 trillion by 2023, the firm estimates. While “the hype around this industry trend has been a bit inflated,” a release said, “solid growth opportunities lie ahead for firms that can leverage their brand, market reach, and technical capabilities.”

Canadian robo-advisor Wealthsimple manages $4.5 billion for more than 150,000 clients globally. The firm announced $100 million in new funding this week led by Allianz X, the digital investment unit of German company Allianz Group.